4 Big Stocks Rising on Big Volume - views

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

Garmin (GRMN) designs, develops, manufactures and markets a diverse line of user-friendly handheld portable and fixed-mount products for the auto, mobile, outdoor, fitness, marine and general aviation markets. This stock closed up 4.7% at $40.28 in Wednesday's trading session.

From a technical perspective, GRMN soared higher here and broke out above some near-term overhead resistance at $40.25 with strong upside volume. This stock has been uptrending strong for the last four months, with shares powering higher from its low of $32.52 to its intraday high of $40.94. During that move, shares of GRMN have been making mostly higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in GRMN as long as it's trending above Wednesday's low of $38.57 and then once it sustains a move or close above Wednesday's high at $40.94 with volume that's near or above 1.06 million shares. If we get that move soon, then GMRN will set up to re-test or possibly take out its next major overhead resistance levels at $43 to $46. Any high-volume move above those levels will then give GRMN a chance to tag its three-year high at $50.67.

ServiceNow

ServiceNow (NOW) is a provider of cloud-based services that automate enterprise IT operations. This stock closed up 2.2% at $45.46 in Wednesday's trading session.

From a technical perspective, shares of NOW bounced higher here right above its 50-day moving average of $42.42 with high volume. This move is quickly pushing shares of NOW within range of triggering a near-term breakout trade. That trade will hit if NOW manages to take out its all-time high at $47.43 with high volume.

Traders should now look for long-biased trades in NOW as long as it's trending above its 50-day at $42.42 and then once it sustains a move or close above its all-time high at $47.43 with volume that's near or above 1.49 million shares. If that breakout hits soon, then NOW will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.

Visa

Visa (V) is a global payments technology company that connects consumers, businesses, banks and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. This stock closed up 1.3% at $180.45 in Wednesday's trading session.

Wednesday's Volume: 3.07 million

Three-Month Average Volume: 3.69 million

Volume % Change: 119%

Shares of V traded modestly higher after a judge overturned the Fed's card fee rule. Oppenheimer said it believes that investors have likely overestimated the worst-case impact of the decision on Visa. The firm believes that Visa's stock could rebound if the Fed appeals the decision and thinks that the Fed may make such an appeal.

Traders should now look for long-biased trades in V as long as it's trending above $172.21 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.69 million shares. If that breakout hits soon, then V will set up to re-test or possibly take out its next major overhead resistance levels at $185 to $190.

HomeAway

HomeAway (AWAY) is an online marketplace for the vacation rental industry. This stock closed up 3% at $29.25 in Wednesday's trading session.
Wednesday's Volume: 2.04 million

From a technical perspective, shares of AWAY bounced higher here right above some near-term support at $27.70 and above its 200-day moving average at $27.62 with above-average volume. This stock bounce is coming after a recent downtrend for shares of AWAY that took the stock from its high of $34 to $27.70. During that move, shares of AWAY were consistently making lower highs and lower lows, which is bearish technical price action. Shares of AWAY are now starting to move within range of triggering a near-term breakout trade. That trade will hit if AWAY manages to take out its 50-day at $30.89 and then once it clears more resistance at $31.42 with high volume.

Traders should now look for long-biased trades in AWAY as long as it's trending above its 200-day at $27.62 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.03 million shares. If that breakout hits soon, then AWAY will set up to re-test or possibly take out its next major overhead resistance levels at $33.74 to $34.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.